Here’s What Happens When You Make a Lot of Costco Returns

Years back, I bought a swimsuit for my son from Costco that he never ended up wearing that summer. Knowing I had a growing kid on my hands, I was mad at myself initially for not making that return in a timely fashion -- I'd basically thrown my money away since the swimsuit was unlikely to fit the following season. When I shared my financial blunder with my husband, his response was, "Are you kidding? It's Costco. They'll take it back."

I remember being nervous when I approached customer service to initiate that return. (This was back when I wasn't as experienced a Costco shopper as I am today.) Sure enough, Costco took the swimsuit back without a hassle. And the money I paid went back on my credit card.

Through the years, I've made my fair share of returns as a Costco member. But all told, the percentage of items I've taken back is relatively small compared to the total number of items I've purchased.

But what if your situation is different? What if you're someone who makes a lot of Costco returns? Are you at risk of losing your membership because of that? The quick answer is, generally not. But you do need to be mindful of Costco's policies.

A very fair approach to returns

I've shopped at a lot of stores, and I truly feel that no other retailer's return policy is as generous as Costco's. Basically, with limited exceptions, you can bring back any item to Costco at any time for a refund. It's that simple.

Certain items have a 90-day return window, like electronics. And there are a handful of items you can't return or get a refund for, like cigarettes, alcohol, gold bars, and live events. Interestingly enough, Shop Cards -- Costco's version of a gift card -- are also non-refundable.

But otherwise, if there's an item that doesn't meet your expectations or needs, you can take it back, no questions asked. You can even return partially eaten food to Costco on the basis of simply not liking it. In that context, though, there are rules.

Not so long ago, I asked a customer service representative about food returns, and she said that Costco will absolutely take back anything where there's a clear quality issue, such as if an item has spoiled ahead of its printed expiration date. She also told me that while Costco will accept eaten food on the basis of a customer not enjoying its taste, you have to make sure to return a reasonable portion of it.

For example, if you buy a Costco cake and bring it back 80% eaten, the store isn't going to give you your money back. But if you bring it back with a small corner missing and explain that it really didn't taste the way you thought it would, you'll generally get your money back the first time. If you keep buying the same cake over and over and returning it on the basis of taste, Costco is probably going to say no.

Can you lose your Costco membership for making too many returns?

According to the customer service person I spoke to, there is such a thing as having your Costco membership revoked for abusing the store's return policy. But you have to go to some pretty big extremes to have that happen.

For example, if you return 10 items a week, every week, or if you keep bringing back food items that are 70% eaten, Costco might flag your account. But for the typical consumer, losing a membership due to making returns isn't something to worry about. Even if you return a few items per month, if it's a small percentage of your total purchases and your returns are reasonable in nature -- such as you're bringing back unworn clothing with the tags still attached -- then it's really not an issue.

In fact, recently, the internet was in an uproar over a person who returned a couch to Costco two and a half years after buying it. If you're worried about losing your Costco membership, pulling stunts like that aren't recommended. But don't sweat it if you end up returning that kitchen gadget that didn't work the way you thought it would or the jacket that's a bit too bulky on your spouse. These things really are a non-issue at Costco.